Account reconciliation sounds simple enough—place the account, recall the account, close it out. But if you’ve ever tried to herd cats, you’ll understand just how chaotic things can get when everyone’s not moving in the same direction.
In collections, the “cats” are the systems: the creditor’s platform, the collection agency’s software, national forwarders, repossession vendors, and sometimes legal partners.
Each one has its own process, its own timing, and its own data.
Getting them all aligned isn’t a matter of luck—it requires intentional effort.
System errors are inevitable. Accounts get closed in one place but remain active in another.
A placement might be updated in a forwarder’s system but not reflected back to the original creditor.
And just like cats, these discrepancies don’t fix themselves—they scatter, hide, and create confusion until someone takes the time to track them all down.
So what can be done?
Start by putting structure around the chaos:
- What kind of confirmation do you receive when an account is recalled or closed?
- Are all your partners consistently updating their systems?
- Do you run regular reconciliation audits to catch stragglers?
Account reconciliation is less about data and more about discipline.
Without process and testing, you’re not managing placements—you’re chasing loose ends.
And in collections, that can mean compliance risks, unnecessary work, or even money left on the table.
Herding cats may never be easy, but with the right systems, communication, and accountability in place, it can be done—and done well.
Author: Bev Evancic
Bev.Evancic@ResourceManagement.com
Bev Evancic is a Senior Vice President at Resource Management Services, Inc. Prior to employment at RMS, Bev worked as the Collection and Recovery Manager at AT&T Universal Card, Citi, and Federated Department Stores. Bev started in the collection industry as a collector at an upscale clothing store in Cincinnati, Ohio. As a returned check and private label credit card collector, Bev gained a basic understanding of the collection industry that has not changed with the introduction of regulations. Her collection philosophy begins with the idea that businesses and customers benefit from preserving the customer relationship. First, collectors need to attempt to contact customers when it is convenient for the customer to discuss his/her financial condition and willingness/ability to pay. Second, you never collect money by intimidating or threatening customers. Third, businesses must make sure the debt is valid.
She has managed all phases of collection and recovery operations, including automated dialer units, bankruptcy, and legal units, skip tracing units, internal collections, outside collection agency networks, and Consumer Credit Counseling. As a Consultant for Resource Management Services, Inc., Bev has spearheaded collection and recovery best practices reviews for many top credit grantors. Her articles on dialer operations, agency management and bankruptcy best practices have been widely publicized.
She is well known and regarded as a specialty expert in the areas of: Repossession, Bankruptcy, Estate, Litigation, as well as Pre- and Post- Charge-off. Prior to joining Resource Management Services, Inc. in 1995, Bev managed the Recovery Department for AT&T Universal Card Services where she developed the bankruptcy, probate, internal and litigation processes.
She is the author of “Recovery Management: Collecting the Uncollectible Account.
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